U.S. drivers have so far kept fueling their cars without any major grumbling, despite the hardship of record high gasoline prices, according to industry sources and consumer advocates.
The reason may be America's famously resilient love affair with the open road that makes fuel demand almost impervious to price. But analysts have added that lower costs for other driving-related needs and a sense that U.S pump prices are lower than they are overseas.
"So far, consumers are not cutting back and there haven't been any protests, although we've heard a lot about frustration among drivers anecdotally," said Jack Gillis, director of public affairs at the Consumer Federation of America.
On Monday, the U.S. government's weekly survey and the daily monitoring by travel organization AAA showed U.S. average retail gasoline pump prices at record highs around $2.10 a gallon.
President Bush Monday reiterated his concern that consumers were "paying more at the pump." But consumers seem to be taking it in stride.
Despite the high prices, U.S. gasoline demand averaged nearly 9.0 million barrels per day in the four weeks ended Mar. 11, or 2 percent above the same 2004 period, according to government data.
"Americans lives are built around personal mobility and for the vast majority that involves cars and gasoline," said Justin McNaull, spokesman for AAA. "We certainly haven't seen prices hit the point where they have to make changes."
He said the only time Americans changed their driving patterns was during shortages like the Arab oil embargo in the early 1970s or a recent localized crunch in Phoenix caused by a pipeline glitch.
But there may be other reasons U.S. drivers have not shown any outrage over skyrocketing gasoline prices.
U.S. drivers spoiled
AAA said Monday that record U.S. gasoline prices are being almost completely offset by lower costs for things like auto maintenance, registration, tires and taxes.
The cost of driving a car in 2005 is expected to average 56.2 cents per mile compared with 56.1 cents in 2004.
Also, while gasoline prices are at record highs in nominal terms, when adjusted for inflation current prices remain below the $3.00 a gallon peak of 1981, according to U.S. Energy Department data.
"Adjusted for inflation, the 1981 oil price would be $85 a barrel today. The same for gasoline. The price in 1981 would be much higher than it is now," Fadel Gheit, energy analyst for Oppenheimer & Co., told Reuters Monday as crude oil futures prices hovered over $56 a barrel.
"We (U.S. drivers) are very spoiled," he said. "We pay less than half what European motorists are paying. The gasoline bill in percentage of disposable income is still among the lowest among developed countries."
The tax man takes a higher percentage of the retail pump price in some European countries.
But perhaps the reaction to higher gasoline prices is still coming.
"We have a roller coaster with the prices, where things go up and down, so people get hardened," said Mark Cooper, director of research at the Consumer Federation.
"And the impact builds up over time," Cooper said. "As you get to the spring you'll find more concern. Low and middle income people are going to feel it more, but they don't get much press attention."
Cooper added that in a CFA study, the average household bill in 2004/2005 for petroleum products, including natural gas in the home, was an added $1,000 per household.
"So that's a big increase to lower income families, but not much for higher income households," Cooper said.
